VI. Trade Regulations and Standards Tariffs and Import Taxes Malawi assesses a duty on goods imported for commercial purposes. Import duties vary according to the product at issue and its country of origin. As a member of the Southern African Development Community (SADC) and the Preferential Trade Area (PTA), Malawi grants reciprocal preferences to member states of those organizations. Effective March 26, 1994, the maximum import duty on non-luxury goods was reduced to 40 percent. The maximum import duty on luxury goods was reduced to 45 percent. Malawi customs officials initially determine which duty rate is applicable to imported goods. Malawi assesses a sales tax on all goods, either foreign made or locally produced. For imported goods, the sales tax is calculated on the landed value of the good plus the import duty, and is assessed at the time of importation. Customs Valuation Effective July 1992, the Government of Malawi (GOM) contracted the services of Societe Generale de Surveillance S. A. (SGS) to assist in the valuation of goods imported into Malawi. An SGS pre-shipment inspection covers verification of the quantity and quality of imported goods as well as price comparisons to ensure that the price of the imported goods corresponds to the prevailing price of comparable goods. All goods imported into Malawi are subject to SGS pre-shipment inspection in the country of supply, except: --- Goods with a FOB value not exceeding USD 5,000.00. Partial deliveries below this value limit are subject to inspection if the total value of the order exceeds fob USD 5,000.00. --- Goods involving no payment for their import into Malawi. --- Aid grants of any kind. --- Government imports of goods intended for military or paramilitary use. After satisfactory completion of an inspection, receipt of an acceptable final invoice, and receipt of shipping details from the seller, the SGS affiliate in the country of shipment will issue a "Clean Report of Findings" (CRF). Presentation of the CRF in Malawi is required for Malawi customs authorities to proceed with clearance of the goods and for the seller of the goods to solicit payment. Import Licenses The policy of the GOM is to reduce the number of goods requiring import licenses. Presently, approximately 30 goods require import licenses. The types of restricted goods include live animals, fresh meat, military uniforms, gold, sugar, radioactive substances, game traps, "flick" knives and firearms. The GOM's Ministry of Commerce, Industry, and Tourism is responsible for granting import licenses and maintains current licensing requirements. Prohibited Imports In addition to goods requiring import licenses, some goods - "seditious" literature, pornographic materials, banned narcotic substances - are prohibited from entering Malawi on national security grounds. With the advent of the new multiparty Malawi, it is difficult to predict what the list of prohibited items will be in the future. Export Controls As with imports, it is GOM policy to reduce controls on exports. Presently only 17 items require GOM export permission. The types of restricted goods include implements of war, petroleum products, wild animals, beans, groundnuts (peanuts), maize, rice, unprocessed tobacco, tea, cassava, live fish, crocodile skins, and gemstones. Import/Export Documentation The "Controller of Customs and Excise" is in charge of Malawi's Customs Department. By Malawi law, the Controller is tasked with maintaining applicable forms to be used "for the transaction of business" with the Customs department, and with keeping specimen copies of all forms for inspection upon request. Customs regulations indicate that the following documents can be demanded by customs officials: --- Transport by Road Vehicle: a complete list of the goods carried; copies of all waybills; copies of consignment notes. --- Transport by Aircraft: Manifests of the cargo which the customs official can insist be signed by an authorized person at the foreign port from which the aircraft departed; lists of the passengers and crew; lists of any goods on board which are accompanying passengers (i.e. baggage); the clearance, if any, from the last foreign port from which the aircraft departed; and the aircraft's journey log book. --- Transport by Train: Copies of invoices, waybills, or other documents relating to the goods carried on the train which will be entered at that port; copies of all delivery and advice notes relating to the goods which will be entered at that port; lists of all goods carried on the train as other than cargo; advices of all goods delivered to "licensed private sidings." Temporary Entry Under Malawi law, the controller is authorized to allow the temporary importation of goods. The controller may impose conditions on temporary importation - such as the condition that the goods be re-exported - and may allow the entry "for such period as he thinks fit" and "for such purposes as he may approve." Temporary entry is customarily authorized when goods are in transit to other countries, or when goods are accompanying individuals who are present in Malawi as tourists. Standards The Malawi Bureau of Standards (BOS), a member of the International Bureau of Standards, promotes conformity with internationally accepted standards. All products manufactured locally for export must obtain a BOS certification before export. Malawi's hotel and catering services are also subject to BOS reviews. Labelling, Marketing Requirements BOS has the authority to prescribe product standardization for Malawi and to exert that standardization on any product sold within Malawi. One BOS prescription, issued in 1982, covers "the labelling of prepacked foods." Free Trade Zones/Warehouses Malawi expects to institute export processing zones by the end of 1994. Presently Malawi allows manufacturing in bond. Membership in Free Trade Arrangements Malawi is a member of GATT, SADC, and PTA. It is a pending member of the Common Market for Eastern and Southern Africa (COMESA).